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APCBEE Procedia 00 (2014) 000000

International Conference on Environmental Science and Development-ICESD 2014

Analysis of Carbon-off setting Targets towards Sustainable Economic Development In Apparel Sector Organization in Sri-Lanka
L.F.D De Z Gunathilakaa,*, K. D Gunawardanab
b

Msc in Management, , University of Sri-Jajewardenepura,Nugegoda , Sri-Lanka Professor in Accounting, University of Sri-Jajewardenepura,Nugegoda , Sri-Lanka

Abstract

This paper focuses on Sri Lankan apparel manufacturing industry in relation to carbon off setting targets to mitigate emissions by reviewing the industry contribution to increasing levels of atmospheric Carbon dioxide (CO2) which is the governing factor in global warming. This paper attempts to highlight that all stakeholders of this aspect of the industry to reduce greenhouse gas emissions and the significance of neutrality which is ever so important indeed for the entire country coming from the Industry that occupies the topmost position of its economy. The ultimate objective of this study is to review the extent of fossil fuel burning the sector is responsible and the pragmatic carbon offsetting steps taken by the apparel organizations with commitment. The findings reveal a significant relation between carbon neutrality and offsetting targets towards greenhouse gas emission. It was also revealed that in order to neutralize emissions merely buying credits is inadequate compared to in-house off settings planning. Currently there are around 270 apparel factories in Sri Lanka, among the ones in operation a sample of 50 apparel companies were selected.

2014 Published by Elsevier B.V. Selection and/or peer review under responsibility of Asia-Pacific Chemical, Biological & Environmental Engineering Society

Keywords: Apparel Industry, Global warming, emissions, carbon off-settings, carbon neutrality, Anova

* L.F.D De Z Gunathilaka. Tel.: +94774779390 E-mail address: dedunuwg@gmail.com

L.F.D De Z Gunathilaka/ APCBEE Procedia 00 (2014) 000000

1. 0 INTRODUCTION Todays garment factories no longer look like traditional factories with high walls and large roofs and a tall chimney emitting black smoke to broadcast to the people near and far that there is a factory in the vicinity. Eco Friendly concepts have been incorporated to the architecture with modern designs like soothing pastel colours, more open spaces to invite fresh air, clean and hygienic work places and rest areas for employees and beautifully laid out gardens, so much so, that one can mistakenly identify a modern garment factory today to a star class hotel. What is more important is how this conceptual change has changed the employee perception and the society as a whole. In recent years, environmental sustainability has become a key managerial issue, and both researchers and practitioners are devoting increased attention to the topic as they face the challenge of achieving a balance between environmental and business needs (Clarke and Clegg, 2000). Moreover, the fashion industrys environmental impact is very high, particularly in relation to its global volumes; it accounts for 9.3% of worlds employees and 4% of worldwide exports (World Trade Organization, 2008). The production processes, and in particular the phases of dyeing, drying and finishing, make intensive use of chemical products and natural resources and generate a high environmental impact (De Brito et al., 2008). The textile sector has experienced significant environmental problems linked to the production process, which is characterized by the intense use of chemical products and natural resources, resulting in a high environmental impact (Lakhal et al., 2008). Several studies have investigated the potential of green fashion to offer a competitive advantage. For example, an inquiry into the attitudes and expectations of Finnish consumers towards sustainable textile and clothing products in 2009 showed that 62.7% of the respondents were very interested in ethical consumption and products environmental impact, whereas 28.3% were somewhat interested (total 91%). In reporting actual ethical consumer behavior, 20.8% agreed that they behaved ethically as consumers and 57.1% agreed slightly with - this (total 77.9%) (Niinim aki, 2009). 2.0 LITERATURE REVIEW
Today fashions are growing more rapidly than ever before. We buy more and more clothing. Our cloths are getting cheaper, at the same time we are buying cloths more frequently and were buying more of them, at the same time greenhouse effect is becoming more threatening and Sri-Lanka is facing a crisis in disposing of its waste. High energy consumption and Greenhouse gas effect happen at the user phase. Unlike the majority of synthetic fibers, acrylic is made from mineral oils or other hydrocarbons such as benzene, is more energy and water intensive than polyester, and produces N2O emissions (Laursen et al., 2007;Fletcher, 2008). Polyester demand has doubled over the last 15 years, and is the most widely used textile today (All wood et al., 2006; Claudio, 2007). The production of polyester and other synthetics, unlike cotton, uses little to no water but consumes twice as much energy to produce 1kg of fiber (Fletcher, 2008). Synthetics require large amounts of crude oil, and release volatile organic compounds (VOCs), particulate matter, CO2, N2O, hydrocarbons, sulphur oxides, carbon monoxide, acetaldehyde, 1,4-dioxane, and acid gases like hydrogen chloride. Many of these emissions can cause or aggravate respiratory disease (U.S. Congress, Office of Technology Assessment, 1987; Claudio, 2007; Fletcher, 2008). In developing countries, 70% of industrial wastewater is discharged into rivers and streams untreated (United Nations, 2003). This often contaminates municipal drinking water Environmental analysts Miller-McCune (Wood, 2009) found that one in four of Chinas 1.35 billion people drink contaminated water on a daily basis. Global water use by the textile industry is estimated at 378 billion liters of water each year (Clay,2004) and The World Bank estimates that up to 17-20% of the worlds industrial pollution comes from textile dyeing and treatment (Chan et al., 2011).

3.0 METHODOLOGY
Detailed discussions and interviews were carried out with the experts in the industry to gather their views to identify and verify the factors. In the first step, questionnaires, interviews, emails, observational studies and literature were used as data sources. Questionnaires were filled by executives, managers and directors of apparel industries who

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were responsible for sustainability development projects and environmental related activities of their respective organizations. The feedback on the questionnaires was obtained through email or by visiting the company. The interviews were conducted when the companies were visited and sometimes there were possibilities for observational study as well. The results from this methodology of study helped to gain an overall understanding about carbon emission and carbon off setting activities of the apparel industry. Currently there are around 270 apparel factories in Sri Lanka Therefore there is no reliable evidence on the current population size of the apparel factories in Sri Lanka. Among the ones in operation a sample of 50 apparel companies was selected representing various types of garments being manufactured and in different geographical areas. Collections of returns were completed in June 2013. Total 50 questioners were distributed among each industry out of which 40 valid questionnaires were returned.

4.0 DISCUSSION
In this Analysis a total of 40 usable samples were obtained. This sample consists of Extra Large, Large and Medium size Organizations with mix of Combination. This implies that the respondents represent the whole view of Apparel sector. Return from the research reveal that in Table 1 is arranged according to the Mean values from maximum to minimum questions asked on the subject of corporate sector planning towards emission reduction through carbon neutrality programs. According to that arrangement, it clearly mentions that three factors which highly effect on the subject of carbon neutrality methods in present day concept in Apparel organization. Mean 4.48, Measuring Life Cycle Assessment (LCA) is so important than all done before if we focus to neutral our off settings amount. All comments fall very close to strongly agree level, because all know about the substance of measuring LCA. Standard deviation 0.847 indicates that no big deviation all respondents when paying attention on the subject of LCA. Table 1: Descriptive Statistics for Carbon Neutrality and Carbon offsetting targets
Carbon neutrality Measuring life cycle assessment Carbon natural shipping Get premium status Voluntarily engage with carbon neutrality Purchasing carbon credits Reducing emissions in house Does not add value to our product Valid N ( list wise) rati ng 4 min Max Mean Std.

min

max

Mean

rating

Std.

Carbon off settings Emission reduction programs Standards to reduce emissions Forecast activity related to emission reduction Reduce emission at corporate level

3.88

0.648

40

4.48

.847

7 6

1 1

4 5

2.35 2.4

0.662 1.598

40

3.68

1.269

40

3.75

1.104

4.05

0.783

40

3.88

1.017

40

2.75

1.276

Measure carbon footprint Concerned about environmental matters New targets for emission reduction Valid N (list wise)

3.23

0.862

4.63

0.705

40

3.65

1.350

4.2

0.853

40 40

1 1

5 5

2.40

1.614

40

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The second highest mean is 3.88 which indicates the Voluntarily engage with carbon neutrality which means that all respondents attitude towards voluntarily program of carbon reduction is found very essential than ever before to mitigate rising effect of greenhouse gas. Standard deviation also not exceeded big deviations which is 1.017. That indicate every organization believe that this is very important and compulsory to do in the future. Mean 3.88 mean that respondents all agree with voluntarily programs. The interesting but most economical factor which highlighted through the third highest mean of 3.75 get premium stators .Researcher asked a question, your organization is interested to neutralize product foot print to get more premiums to your product? , answer was more positive and all commented yes but not strongly agreed. Result clearly mentions that all respondents attitudes towards this question is very close to neutral because today all are focusing three pal bottom line, socio economic sustainable development. Standard deviation 1.104 indicates respondents not comment in a different way all comments are parallel. The fourth highest mean is 3.68, related to the Questioner of Carbon neutral shipping, researcher asked a question of do you prefer to deliver your products to other countries through carbon neutral shipping lines? Respondents commented within the range of neutral and agree levels. Researcher understood during the research period that majority respondents agreed some Strongly agreed and few stayed Neutral. It clearly indicates the standard deviation which is 1.266. Fifth important fact is Reducing carbon emission in house, which shows the mean as 3.65 but standard deviation 1.350. All respondents agreed to reduce emission through in house activities. Standard deviation of 1.35 means that multiplicity of ideas. Emission reduction at corporate level is no easy task. Challenging targets must be set on an annual basis. Second lowest mean is 2.75, thats indicates Purchasing Carbon credits. Respondents disagreed or some are neutral with buying credits with comparison to results. But none on disagreed level. It means that some organization have interest to buying credits from crediting source and off sett the foot print. Standard deviation 1.267 mentions that ideas fluctuate within considerable broad tolerance. The lowest mean 2.4 for Does not add value to our product and standard deviation is 1.614.All respondent strongly disagreed or disagreed with this statement also clearly explained that all respondents ideas fluctuate within consi derable broad tolerance. The Questioner asked from respondent is, you do not involve yourselves in carbon neutrality programs because it does not add value to you product? All disagreed mean that respondents strongly agree with carbon neutrality as on important subject their products.

4.1 Findings
Carbon neutrality towards greenhouse gas emissions A one way ANOVA was conducted to check whether there is a significant relation between carbon neutrality and greenhouse gas emission. The omnibus F-test revealed a significant effect of group, F (13, 26) = 2.184 p = 0.044 There are significant differences among the Carbon neutrality and Greenhouse gas emission effect, at significance level 0.05. Typically, when a p=0.044 (p>0.05) have a statistical evidence to accept the alternative hypothesis, and instead conclude that the differences or relationships being studied are statistically significant. Thats mean there is a significant difference between Carbon neutrality toward Green House gas emissions Therefore we have to accept the Alternative hypothesis (H0)3. Carbon off setting targets towards Greenhouse gas emission A one way ANOVA was conducted to check whether there is a significant relation between carbon-off setting programs and greenhouse gas emission. The omnibus F test revealed a significant effect of group, F (9, 30) =2.437, p = 0.032 There are significant differences among the Carbon-off setting and Greenhouse gas emission effect, at significance level 0.05. Typically, when a p=0.032 (p<0.05), Have a statistical evidence to reject the null hypothesis, and instead conclude that the differences or relationships being studied are statistically significant. Thats mean there is a significant difference between carbon -off setting programs and Green House gas effect in Selected Apparel sector organizations. Therefore we have to accept the Alternative hypothesis. 5. CONCLUTION AND RECOMMENDATION Apparel Industry, electricity is used mainly for lighting, running of motors and air conditioning. More than the garments stitching process electricity is used in the production of its raw material, the textile and fabrics and

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therefore the manufacturing process of fabric should not be isolated when looking at apparel sector influence on GHG emissions. It is encouraging to note the recognition and preference given by the buyers to factories who make a conscious effort to reduce the use of electricity. Sri Lanka is blessed with natural sun light all throughout the year and therefore for lighting all efforts must be directed at using natural day light during the day. Properly designed roofs that will allow sufficient lighting to work areas shall be a good simple start. Where air conditioners are used proper sealing of doors and windows and isolation on the roof will give good results. When not in full production planning production avoiding the peak hours where tariff charges are high could give good results. Long-term recommendation will cover the common objectives of corporate managers awareness towards the environmental sustainability in apparel industry. For a long lasting discipline to embrace our lives it must start at a young age and therefore the companies who are affected must lobby to the Government to introduce the teaching of GHC effects in our lives as part of curriculum of primary school. If so by the time the young reach working age they will be fully aware and will know the repercussions that will follow. Government must introduce certain regulations in the building approvals to compel new builders to abide to minimum eco-friendly (Green buildings) designs to maximize the use of natural light and reduce the use of electricity. Government must offer incentives like tax reductions to industries to upgrade their obsolete machines that consume more electricity. Encourage the use of solar power wherever possible. At government level incentives must be offered to all industries including apparel to use solar power. Eg: pre heat water through solar trough technology to lessen the burning of furnace oil in the boiler. Compel industries to get involved in plantation projects by offering state land free on long lease (99 years) that are not cultivated presently Acknowledgement Author is grateful to Latex Green Pvt Ltd for providing facilities and day offs for research and encouragement and also University of Sri Jayewardenepura Sri-Lanka. Special thanks to Mr. Ananda Jayethileka (CEO/ Chairmen Latex Green) who has helped in editing this paper. Reference
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